19 Oct 2006contract award▲ GoodMajor
Metgasco signs Mitchell Drilling Contractors for the reserve upgrade program, up to four core wells starting early December. The aim is over 100 PJ of 2P reserves, up from 22 PJ today.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
16 Oct 2006annual report● Neutral
Re-release of the 2006 annual report lodged on 29 September, with the same content: 3P 1,123 PJ, 2P 22 PJ, 30 MW power station. No new information.
4 Oct 2006director officer appointment▲ Good
Nicholas Heath, a former ExxonMobil Australia director with over 30 years in petroleum engineering and gas marketing, joins as non-executive director, effective immediately. Adds gas-marketing experience as Metgasco starts to commercialise its reserves.
29 Sept 2006annual report● Neutral
2006 annual report restates the March 2006 certified reserves: 3P 1,123 PJ and initial 2P 22 PJ, the largest certified in NSW. Chairman says 2P covers under 10% of PEL 16 and the goal is wider 2P reserves. Power station is 30 MW.
19 Sept 2006regulatory community update▲ Good
Metgasco received the NSW Planning Department's environmental assessment requirements for the 30MW Richmond Valley Power Station and Casino Gas Project, and is starting the required studies. This is a step in the approvals process, not an approval.
11 Sept 2006capital raising announcement● NeutralMajor
Placement of 11,775,000 shares at 20 cents raised $2.355m, about 15% of capital, well below the 30 cent price of the October 2005 raise. Funds go to drilling to expand 2P reserves toward 100 PJ and to working capital.
What it means for a shareholder
11.8m new shares at A$0.200 to raise about A$2.4m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
11 Sept 2006investor presentation● Neutral
Investor update restating strategy: 30MW power station first, 200MW pre-feasibility, and a goal of 100 PJ 2P. Reserves are 22 PJ 2P and 1,123 PJ 3P. Lists cash on hand of $500k and about $9.5m spent to date.
10 Aug 2006drilling result▲ GoodMajor
Middle Creek #1 reached 633m. Logs indicate the top seam is the Richmond, 6.95m thick and gas charged, with 16m more gas-charged coal below. Company says this adds about 150 km² of potential development area, extending the field 15 km south-west. Coring follows when a rig is available.
3 Aug 2006drilling result▲ Good
Middle Creek #1 hit a 5m gas-bearing coal seam at 412m that looks like the Richmond seam, plus two more gas-bearing seams. If logging confirms it, the South Casino field extends 15 km south-west.
1 Aug 2006investor presentation● Neutral
Conference presentation restating known facts: 1,080 Bcf 3P, 21 Bcf 2P, 100% of PEL16 and 75% of PEL13 on farm-in. Aims for over 100 Bcf 2P and power delivery from early 2008. Share price $0.27, market value about $21m.
31 July 2006quarterly activities report▲ Good
June quarter activities: pilot field produced 2.9 Mmcf, and daily horizontal-well gas is up 116% since quarter end. Power station advanced, including Major Project status. Middle Creek #1 under way. Focus is dewatering, then converting 2P to 1P reserves.
31 July 2006quarterly activities report● Neutral
June 2006 quarter cash report: cash fell to $1.316m from $2.023m after a $0.707m outflow. No debt. Estimated outflow next quarter is $440k. Shares unchanged at 79,015,000, with 250,000 new options at $0.32 expiring 2011.
28 July 2006drilling progress report● Neutral
Middle Creek #1 is drilling ahead at 186m after setting casing at 78m. Target is about 600m. No coal results yet.
26 July 2006regulatory community update▲ GoodMajor
NSW Planning Minister declared the Casino Gas Project and 30MW Richmond Valley Power Station a Major Project, which the company says will streamline approvals. Metgasco has begun inviting infrastructure investors to take part in ownership and development.
17 July 2006drilling spud● NeutralMajor
Metgasco-Molopo Middle Creek #1 spudded 17 July in PEL 13, to about 600m, 23 km south-west of South Casino. This is the first reserve-expansion well and counts toward earning the initial 51% under the Molopo farm-in.
17 July 2006drilling spud● Neutral
Molopo, Metgasco's PEL 13 farm-in partner, announces the same Middle Creek #1 spud. States Metgasco funds 100% of the well, largely satisfying its obligation to earn 51%, with an option to 75% for a further $267,000.
8 June 2006other● Neutral
Notice of an audio broadcast with the MD on coal seam gas reserves. No new information; repeats the 1,080 Bcf 3P and 21 Bcf 2P figures.
31 May 2006drilling progress report● Neutral
MSC-9 is producing water at up to 147 barrels/day, more than modelled, which the company reads as a larger dewatered area. MSC-10 is erratic and suspended for a pump replacement. Company says a preferred fracture direction was identified. Core well for PEL 13 expected by end June.
19 May 2006investor presentation● Neutral
Analyst interview with MD David Johnson. Restates 21 Bcf 2P booked versus about 40 Bcf needed for the 30MW plant. Targets approvals by December 2006 and construction from about January 2007. Horizontal wells still dewatering; model peak 450–750 mcf/day.
27 Apr 2006quarterly activities report● Neutral
March 2006 quarter cash report: cash fell to $2.023m from $3.704m after $1.681m net outflow. Estimated outflow next quarter is $1.107m. No debt. PEL 13 farm-in right to 75% is listed with no interest held yet.
27 Apr 2006quarterly activities report● Neutral
March quarter report recaps the 1,080 Bcf 3P reserve, completed horizontal wells, flows above 100,000 scf/day and the PEL 13 farm-in. Next quarter plans 1–2 core wells for reserves expansion and continued work on the 30MW power project.
12 Apr 2006flow test result▲ GoodMajor
First flow rates from the horizontal wells: MSC-9 peaked at 101,000 scf/day and MSC-10 at 13,000 scf/day, still early in dewatering. MSC-9 is well above the 10,000–15,000 scf/day of the earlier vertical pilot wells, though MSC-10 had a gas block.
3 Apr 2006drilling progress report▲ Good
Both horizontal wells (MSC-9 and MSC-10) are dewatering and producing gas and water, all flared. The company says early rates match its reservoir model, and the drilling rig is leaving site.
27 Mar 2006drilling result▲ Good
Second horizontal well MSC-09 is fully drilled and intersected vertical well MSC-05, completing the two-well horizontal program. Flushing and then production testing follow, and MSC-10 is back on line flaring gas.
22 Mar 2006drilling progress report● Neutral
MSC-9's angled section is done, with about 150m of in-seam drilling left before meeting MSC-05. MSC-10 has gas lines installed for flaring, and production testing is due to start once they are pressure tested.
16 Mar 2006half year report● Neutral
Half-year accounts to 31 December 2005, repeating known items: the $3.99 million placement, the horizontal drilling program, and the move to a 30 MW Casino power station. A heads of agreement with Northern Co-op Meat Co on a second power project is noted. No dividend is proposed.
13 Mar 2006drilling progress report● Neutral
MSC-9 is at 532m and drilling its angled section. MSC-10 is dewatering, with early gas desorption and flow seen; further water flushes are planned.
7 Mar 2006drilling spud● Neutral
Second horizontal well MSC-09 spudded on 6 March after rain delays, drilled to 18m with conductor set. Meanwhile, MSC-10 is fitted with liner and tubing, with flushing and dewatering to start shortly.
6 Mar 2006resource reserve update▲ GoodMajor
Independent certification (MHA) gives PEL 16 South Casino 1,080 Bcf possible (3P) and 21 Bcf probable (2P) reserves, which the company says are the largest certified in NSW. The small 2P figure still needs to grow to support the planned 30MW power plant.
28 Feb 2006drilling result▲ Good
Metgasco finished its first horizontal well, MSC-10, successfully connecting it with vertical well 8. Flow testing should start after liner and pumps are installed, and the rig then moves to the second horizontal well, MSC-09.